On the Choice of Tenancy Contracts in Rural India
15 Pages Posted: 6 May 2003
This paper uses data from rural India to analyse how cultivating household and plot level characteristics affect contract choice on a particular plot of land. We estimate a sequential choice model where the landowner first decides whether to cultivate the land on his own (possibly with hired labour) or to lease it out. If the latter, then a choice is made between fixed-rent or share-cropping. One interesting finding is that the greater the value of the plot, the greater is the probability that the plot is owner cultivated. Moreover, among tenant cultivated plots, higher value plots are share-cropped.
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